SUNNY UPPAL Vs. APPROPRIATE AUTHORITY INCOME TAX DEPTT

JUDGEMENT

(1.) An order, dated 30 November 1996, passed by the Appropriate Authority under Section 269UD(1) of the Income-tax Act, 1961 (in short the Act), directing pre-emptive purchase of a residential house bearing No.22/78 Punjabi Bagh, New\Delhi is under challenge in this writ petition.

(2.) Material facts, leading to the filing of this petition are as follows: On 12 August 1996, the petitioner entered into an agreement with respondents No.2 to 4, for purchase of the aforementioned 1 1/2 storeyed property, built on a plot admeasuring 2255.55 sq.yds for a consideration of Rs.2.76 crores. As per the agreement, the vendors, respondents No.2 to 4 herein, were paid a sum of Rs.30 lacs by way of earnest money; a further sum of Rs.51 lacs was to be paid within fifteen days from the date of grant of no objection certificate by the Appropriate Authority, and within ninety days of the receipt of all necessary and requisite permissions, no objections and clearances, the balance sale consideration of Rs.1.95 crores was to be paid and simultaneously peaceful vacant physical possession of the property was to be delivered to the vendee. On the same day, the petitioner and respondents No.2 to. 4 filed a statement in Form 37-1 along with the agreement to sell, seeking'no objection certificate from the Appropriate Authority. On 8 November 1996, the Appropriate Authority issued a notice under Section 269UD(1A) of the Act to the petitioner and respondents 2 to 4, stating that the apparent consideration of Rs.2.76 crores in respect of th.e subject property is considered low when compared with property No.20, Road No.75, Punjabi Bagh, New Delhi, hereinafter referred to as the sale instance. Relevant portion of the notice reads as under:

(3.) The impugned order is challenged as arbitrary and vindictive mainly on the grounds that: